Fastenal Reports Modest 2.4% Net Sales Growth, Stable Profitability for Nine Months Ended September 30, 2024

Fastenal Company reported its financial results for the nine months and third quarter ended September 30, 2024, showing a modest increase in net sales and stable profitability compared to the previous fiscal period.

For the nine-month period, net sales reached $5,721.5 million, a 2.4% increase from $5,588.1 million in the same period of 2023. In the third quarter alone, net sales were $1,910.2 million, reflecting a 3.5% increase from $1,845.9 million in the prior year. The growth in sales was attributed to unit sales increases, particularly from larger customers and new Onsite locations, despite adverse weather conditions and foreign exchange rate impacts that negatively affected sales.

Net income for the nine months was $888.5 million, slightly down from $888.6 million in 2023, while for the third quarter, net income increased to $298.1 million from $295.5 million. Basic and diluted net income per share remained unchanged at $1.55 and $0.52, respectively, for both the nine-month and third-quarter periods.

Gross profit margins decreased slightly, with gross profit for the nine months at 45.2%, down from 45.7% in 2023. The decline was attributed to a less favorable customer and product mix, higher import duties, and the absence of a significant shipper rebate received in the previous year. Selling, general, and administrative (SG&A) expenses increased by 2.8% for the nine-month period, totaling $1,418.5 million, which was below the rate of net sales growth.

Fastenal's strategic developments included an increase in full-time employee headcount by 610 over the past year, primarily to support the expansion of Onsite locations. The company signed 93 new Onsite locations in the third quarter, bringing the total to 1,986 active locations, an 11.7% increase from the previous year. The company aims to continue expanding its Onsite locations while stabilizing its traditional branch network.

Cash dividends paid increased to $669.9 million for the nine months, up from $599.5 million in 2023. The company declared a quarterly dividend of $0.39 per share, consistent across all quarters of 2024, totaling $1.56 per share for the year, down from $1.78 in 2023.

Overall, Fastenal's performance reflects a stable revenue growth trajectory, with strategic investments in employee resources and Onsite locations aimed at enhancing service delivery and market presence.